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IRVING, TX (AP) — Hostess Brands says it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.

The Irving, TX, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.

Hostess had warned employees that it would file a motion in US Bankruptcy Court to unwind its business and sell assets if plant operations didn’t return to normal levels by Thursday evening.

The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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  • Guestarticulatore

    SCTom, this is the whole document which was excerpted by RSimmons a few posts upthread: http://www.teamster.org/sites/teamster.org/files/Wilson_Report_as_Filed_Redacted_(00216121)_c.PDF

  • Guestarticulatore

    Guest Reply, you have struck the nail on the head! What the anti-union folks gloss over is that there have already been deep cuts in wages and benefits endured by the union rank and file and management came back demanding MORE cuts and give-backs.

    Keep an eye open for further reports. My bet is that the Bankruptcy Court is going to see right through this management ruse to void its collective bargaining agreements.

  • anne

    How many union members know where their hard earned dues are going? Do they think its worth it?


  • Soncerie

    Wow! Your comments on Unions, President Obama, and twinkies! Hmmm, did you get on here when Bush was in office and complained about him, oh, that’s right, he doesn’t look like President Obama. Forgetful are we in this little seaside, tourist town, leave things as they are after 1898! Just because you get on here with your side of things, don’t make it believable, you’re just one of the sum. Let’s see if they approve my comment or only the one sided jokes you guys post :)

  • RSimmons
  • Guest1889

    Hell hath no fury like a Republican scorned.

  • Guest666

    Another company bites the dust thanks to a union. Unions have caused more job loss due to outsourcing than can be imagined. A company has to be competative and outrageous wages and benefits drive the prices of goods so high that consumers refuse to pay it.

  • jj

    where did you cut and past that from?

  • jj

    Even the Unions Financial experts tried to warn the union members, but no they didn’t think it would happen. They need to remember it was Brush that started the paper work to help out the auto industry that Obama took credit for and their union was bigger.

    Obama starts his World Tour as you start heading to the unemployment lines. Got to love it.

    The Teamsters union is urging the bakers union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company’s books, the Teamsters say that Hostess’ warning of liquidation is “not an empty threat or a negotiating tactic” but a certain outcome if workers keep striking.

    From http://www.usatoday.com/story/money/business/2012/11/16/hostess-twinkies-ding-dongs-wonder-bread-going-out-of-business/1708409/

  • SurfCityTom

    some document of an undetermined date.

    And it may all be relevant.

    But the fact remains that there are now 18,500 unemployed workers who may not be eligible for unemployment compensation as they chose, at their Union’s behest, not to return to work.

    They had the opportunity to return. They chose not to.

    I believe that’s called job abandonment.

    No doubt there is fault on both sides.

    But I remember Lee Iaccoca standing before the Chrysler labor leaders. He noted Chrysler would have jobs with a labor rate of $20, I believe. The Union wanted $5 per hour more. He stood fast and said Chrysler would not have jobs at $25 per hour.

    While I may be off a couple of dollars on the amount desired and the amount agreed to, this is very similar.

    History repeated itself. But, this time, Labor leaders elected to have the employees walk the plank.

  • RSimmons

    Testimony of expert witness Harry J. Wilson in the latest bankruptcy proceeding of Hostess by

    I have been asked to give my expert analysis of the causes of Hostess’s current financial condition, what steps would be required for the Company to reorganize and what a
    prudent investor, including a labor union investing through granted concessions, would require
    to invest in a reorganized Hostess. Through working with my MAEVA colleagues, I have
    determined that Hostess’ financial challenges are a result of a number of problems, largely of
    its own making – years of underinvestment in products, facilities and equipment; long-term
    neglect of once-dominant brands; a hollowing-out of a distribution system that once provided a
    competitive advantage only a few short years ago when Hostess was the largest baking
    business in the US; a failure to innovate and develop compelling products in newer, highergrowth
    product segments, leaving them dangerously over-represented in the declining legacy
    segments; management missteps and a Board that allowed these mistakes to continue for far
    too long; a failure to compete effectively to acquire niche products and expand its product
    offering to improve its competitive position; and a grossly overleveraged capital structure
    imposed in the first Chapter 11 case.

    13. While Hostess’ labor costs are higher than some of its competitors, roughly half
    of its largest competitors operate under similar union contracts and thus have similar (and, in
    many cases, higher) labor cost structures. In fact, of the 20 largest baking companies (as
    categorized by Hoover’s), 16 of these companies have some unionized employees and 9 of the
    16 have roughly comparable IBT representation to Hostess. It is my understanding that many of
    these contracts actually have better compensation and benefits than the Hostess IBT contracts
    as most of these other companies did not receive the concessions which Hostess received
    during its first bankruptcy. Furthermore, the Company’s labor costs and multi-employer
    pension plan contributions since its exit from bankruptcy in early 2009 have been more or less
    as anticipated, highlighting the fact that its current labor costs are not the primary cause of its
    current financial problems.

    14. During its first Chapter 11 restructuring, unionized employees provided two
    rounds of concessions to the Company, with Hostess’ Teamster-represented work force
    providing over $60 million in annualized savings (total labor savings were approximately $110
    million). Labor costs and MEPP contributions since emergence have been right in line with
    what the Company projected in its five year business plan in February 2009.

    In other words, had the Company met its own projections (as it, in fact, did for its labor costs),
    the Company would be generating substantial positive operating cash flow and would not have
    needed to file Chapter 11.

  • 1981duke

    No more twinkees,hostess cupcakes?
    Wake up America,the culture and landscape has changed.
    This product was a “core’ snack for years.

  • tweety11

    Its a sad day for the workers but politics come on.Check with there union and ask them how it got to this point.The election is over the democratic process is over the election is a done deal.Had the Republicans chose someone better to run the outcome may have been different.Maybe by 2016 you all will have someone to run against Hillary.

  • Jerry
  • Guest Reply


    For those of us that have worked, or are still working for a company for 25 + years…I’m sure you have seen an era take over in your business called “Mismanagement”!
    It’s happening all across America, where “Inexperienced” so called “Team Leaders” are put into place to make “Experienced” decisions on how to keep a company operational…in all aspects.
    Now comes the Enron effect:
    Employees, Union or Not, are tired of upper management turning an operation into a short term profit function for a short term profit, then getting the Hell out, which usually takes long time jobs with them, not to mention peoples financial plans. But what do the management guru’s care…they made their profits, and now off to buy up some small island somewhere and sip cocktails on the sandy beaches.
    When people stand up for their hard earned years, and rights of being a dedicated employee, then complain about the cost of health care/pension/salary loss making their jobs turn into a pocket lining process for upper management…their thoughts are supported by you and I. But when the word UNION is mentioned…then it’s all the employees fault.
    Double standard way of thinking by John Q. Public…I’ve seen it for years…and Hypocritical.
    Here’s an example: A company locally here (Wilmington) is not Union…but a majority of their Sister affiliates are: Local people here want all the Union benefits…(i.e.) wages/other benefits…but at the same time they criticize the Unions within their own company…until Contract Time!

  • anne

    Okay strikers – now how is it working for you? You are now out of a job period. This won’t be the first company and it won’t be the last because of what is going on. More and more people are going to lose their jobs or at least go from full time time part time so that the companies won’t have to pay for insurance. You can thank Obama and his cronies for that!

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